Understanding the Uniform Residential Appraisal Report

When a property is sold, a Uniform Residential Appraisal Report is completed. A Uniform Residential Appraisal Report, or URAR, is one of the most common forms utilized in real estate. The report is used to appraise properties and provide reporting on and analysis of single-family dwellings. Lenders will utilize the URAR anytime a property is purchased or refinanced. Everything about the property is detailed on the URAR and is used to appraise the value of the property. If you are unfamiliar with the URAR, here is a breakdown of what to expect on and how to understand the report.

Property Description

The first box of the URAR is the property description. This area provides an overview of the property being appraised. Information shown in this area is the property address, taxes, borrower, seller, occupant type, sales price and neighborhood (subdivision) name. In addition, the lender and appraiser information is listed.

Neighborhood and PUD

The second area of the URAR is the neighborhood and planned unit development (PUD) description. The neighborhood section gives an overview of the history of that particular area. Items detailed are location type, growth rate, property value and occupancy type. The PUD section concerns the homeowner’s association, amenities offered and total units within the neighborhood. In addition, marketability factors of the neighborhood, such as proximity to jobs and recreational areas, are noted.

Site

The third area is where a detailed look at the property is noted. This area covers the property specs. Items such as utility type and zoning issues are noted. Other areas covered are a general description of the property and information about the interior and exterior design, insulation and equipment. Any areas requiring improvements are notated in this section. There is also a comments section in which the appraiser can expand upon any noted improvements, environmental issues and any additional features that were not a part of the original structure.

Value

The final area of the URAR is the valuation portion. This is where your property value will be determined. Based off the findings from the first three sections, a monetary value will be attached to the property. In considering the value of the property, a comparison and analysis will be done on similar properties. The comparison and analysis (comps) compares the value of the identified properties to other homes in the same neighborhood with similar structures. The comparison and analysis helps to value the home in comparison to other homes in the neighborhood but at a value that is fair based on the condition of the particular property.

Final Determination

The final area of the URAR is the reconciliation. The reconciliation is a brief, final determination of the property's value. It states the condition of the property, conditions of the appraisal and the final value determination made by the appraiser. The appraiser must certify his or her findings by signing and dating the URAR and providing his or her licensing information on the report. If the report is not signed and dated, then the appraisal is not valid.